EXPERT ADVICE: Bill McPherson | Vice President of Franchise Development | AlphaGraphics
Expand Your Footprint with Multi-Unit Franchising Bill McPherson is the vice president of franchise development for AlphaGraphics, a leading franchisor of printing and marketing solutions. With more than 285 locations in 6 countries, AlphaGraphics is one of the largest U.S.-based networks of locally-owned and operated Business Centers offering a complete range of print, visual communications, and marketing products. For more information, visit www.alphagraphics.com.
Multi-unit franchising has quickly become a popular option among established and new franchisees. Not too long ago, franchise owners opted to operate single-unit locations based on the idea of buying themselves a job. Over the past several years, ambitious entrepreneurs have decided that expansion is one of their main goals when purchasing franchises. According to FranData, there are nearly 45,000 multi-unit operators in the United States. They make up approximately 54.8% of the overall franchise market, equaling about 228,000 total units. Of those that own multi-unit operations: • 42.3% own two to five units • 14.3% have six to 10 units • 15.3% own 11 to 25 units • 8.6% have 26 to 50 • 19.6% run 50-plus units While the monetary profit may seem enticing for franchisees wanting to expand their footprint, there are things to 38 Franchising MAGAZINE USA
consider before diving headfirst into the multi-unit space. First, there is a higher investment initially for opening multiple franchise locations. If you already operate a franchise and look to expand, you will need the funds to finance the additional locations. The second thing to consider is your overall strategy for opening multiple locations. Arguably the best time to open additional locations is when you are both mentally and financially ready for the added pressure of operating two or more locations. In addition to finance, one needs to consider strategic location, inventory and equipment, a timeline, and the overall determination to succeed. Below are some additional things to keep in mind when deciding on opening multiple franchise locations:
Does the Franchise Support Multi-Unit Owners? If you are just getting into the franchise business and aspire to open multiple units from the beginning, it is important to have a conversation with the franchisor. One of the primary reasons entrepreneurs purchase a franchise is for their support systems and training programs. Explain
your overall goals and desire to operate multiple units to the franchisor. Find out how their support system helps multiunit owners. When it comes to serving multi-unit owners, a franchise needs more sophisticated systems in their network. That includes high-quality software, operational systems, owner training and tools. Understanding the franchisor’s expectations of you as a muti-unit operator is also important. Do they expect you to have a presence at each location? How many people are needed for you to begin your expansion? These are just a couple of questions that you should consider asking the franchisor. In many cases, a great franchise brand will guide you through these questions during the discovery phase while also considering your knowledge and skillset. A great franchise will help steer you down the right path on your quest for success.
